The company says investing $200 million in a new test wing there will allow them to bring work that’s being done all over the country under one roof, and move faster in developing next-generation powertrain technologies.

“These moves will help our entire Powertrain team work more effectively across the organization to develop the powertrain technologies we need to build the world’s best vehicles,” said Sam Winegarden, GM Vice President of Global Engineering.

Governor Snyder was on hand for the announcement Wednesday. He hailed the expansion as great news, but says it also highlights the need for a skilled workforce.

“We know we’ve got the talented people. Now it’s making sure we’ve got the alignment better between supply and demand of talent in our state, and continuing with the great environment we have,” Snyder said.

GM estimates the move will move about 400 jobs now in various facilities to Pontiac. The investment is part of a GM commitment to invest $1.5 billion in North American facilities across the state and the country.

GM officials say employees will start transferring to Pontiac as soonas the middle this year, and the expansion will be completed in mid 2014.